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Intel Reorganization: 8 Big Changes Made Under Pat Gelsinger

To fight back against the growing influence of AMD, Nvidia, Arm and other companies in the semiconductor industry, new Intel CEO Pat Gelsinger is enacting a whirlwind of organizational changes, both on the manufacturing side and the product side. CRN reviews the eight biggest changes.

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Top Data Center Exec Navin Shenoy To Depart

Intel CEO Pat Gelsinger announced on Tuesday that Navin Shenoy (pictured), Intel’s top data center executive, would depart on July 7 as part of a major restructuring of Intel’s Data Platforms Group.

Gelsinger did not give a reason for Shenoy’s incoming departure. However, in a Tuesday filing with the U.S. Securities and Exchange Commission, Intel said it had “determined” that Shenoy, who has been executive vice president and general manager of the Data Platforms Group, “will separate from Intel effective as of July 6, 2021.”

“Please join me in thanking Navin for his service and leadership at Intel over the past 26 years, including his contributions leading the DPG team as well as the Client Computing Group and Intel Asia Pacific,” Gelsinger said in a June 22 memo to employees. “We wish him well as he starts his next chapter.”

Shenoy’s planned departure is significant for several reasons. He was on the company’s executive leadership team. He was once a candidate to become Intel’s next CEO before Bob Swan was appointed to the role. He was the third most highly compensated Intel executive last year, and when he departs in July, it will mean that the three most highly compensated Intel executives from last year will no longer be at the company, signifying the major changes Intel has undergone in the past several months.

But perhaps more importantly from a product perspective, Shenoy was in charge of the launch of the third generation of Intel’s Xeon Scalable processors, code-named Ice Lake. The CPUs launched in May and are Intel’s first server processors to use the company’s troubled 10-nanometer manufacturing process, which saw multiple years of delays. Those process delays contributed to the company pushing the launch of Ice Lake for servers beyond its previously planned 2020 launch window.

Despite Intel’s Xeon processors jumping to a more advanced manufacturing node, the company wasn’t able to declare major performance and price-performance benefits against AMD’s two most recent generation of EPYC processors, which include the Milan CPUs that launched in April.

AMD recently said that after performing tests comparing its new third-generation EPYC CPUs with Intel’s new third-generation Xeon Scalable CPUs, the company found that EPYC remains the “fastest server CPU on a per-core and per-socket basis.” The company also said EPYC still maintains the 220 performance world records announced in March and the “best total cost of ownership in the industry.”

Intel officials, on the other hand, have said its new Ice Lake CPUs are faster than AMD’s Milan chips for a smaller group of emerging workloads that take advantage of the new AI, HPC and cryptography accelerators only found within Intel’s new processors.

Since the launch of EPYC in 2017, AMD’s momentum in the x86 server market has allowed the company to grow share against Intel to 8.9 points as of the first quarter of this year. That was when AMD saw its largest share gain yet against Intel in the server market with EPYC processors, the chipmaker’s highest single-quarter gain for server CPUs since 2006.

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